Muslims and non-Muslims intention to hold Shariah-compliant credit cards: a SmartPLS approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zaimy Johana Johan ◽  
Mohd Zainee Hussain ◽  
Rohani Mohd ◽  
Badrul Hisham Kamaruddin
Keyword(s):  
Credit Card ◽  
Service Providers ◽  
Group Analysis ◽  
Credit Cards ◽  
Subjective Norm ◽  
Cultural Dimensions ◽  
Extended Model ◽  
Actual Performance ◽  
Content Type ◽  
Factors Affecting

Purpose The purpose of this paper is to examine the relationship between attitude, subjective norm, perceived behavioural control, religiosity, knowledge and Shariah-compliance with intention to hold Shariah-compliant credit card (SCCC) amongst Muslims and non-Muslims. Design/methodology/approach Researchers used survey questionnaire to collect data and applied a purposive sampling method, then analyzing the data using descriptive statistics and also multi-group analysis of SmartPLS. Findings For Muslims, attitude, subjective norm, Shariah-compliance, knowledge and religiosity are positively significant. While for non-Muslims, only attitude and subjective norm are positively significant to intention to hold SCCCs. Research limitations/implications The behavioural study only focusses on intention to hold Islamic credit cards, which is constraining the extended model of the theory of planned behaviour (TPB) without the actual performance of the behaviour, which is holding SCCCs. Secondly, the research caters for a single method, namely, quantitative without including the qualitative method to better understand and explore other factors affecting consumers’ behavioural intention. The qualitative part can be carried out by conducting interviews with practitioners, regulators and customers. Thirdly, the cultural dimensions are not combined as parts of TPBs’ antecedents for extended model that could be affecting intention, as Malaysia has diverse ethnic groups with different religious background. Practical implications In terms of managerial implications, the findings will further assist financial service providers to develop more effective marketing strategies for Islamic financial products not just to cater for the Muslims but also the non-Muslims, who are increasingly attracted to Islamic banking. As many Muslims are still holding conventional credit cards, it is timely for the Islamic financial institutions to attract them with the SCCCs. Social implications Financial marketers are expected to be qualified and well-versed on the different Islamic product structures and also the conventional products. By having such enables them to enlighten and create awareness amongst the targeted consumers in seeking Shariah-compliant financial-related products. Originality/value The research will contribute to new theoretical knowledge of an extended behavioural model in relation to customers’ perception towards SCCCs’ acceptance.

scholarly journals Factors affecting to select Islamic credit cards in Pakistan: the TRA model

2017 ◽  
Vol 8 (3) ◽  
pp. 330-344 ◽  
Author(s):  
Muhammad Ali ◽  
Syed Ali Raza ◽  
Chin-Hong Puah
Keyword(s):  
Regression Analysis ◽  
Credit Card ◽  
Negative Impact ◽  
Empirical Work ◽  
Credit Cards ◽  
Empirical Support ◽  
Influential Factor ◽  
Content Type ◽  
Factors Affecting ◽  
Bank Managers

Purpose This paper aims to investigate the factors affecting intentions to select Islamic credit cards in Pakistan by using the theory of reasoned action (TRA) model. In general, bank customers are aware of credit card facility, but the leading factors to select Islamic credit cards are particularly unexplored. Due to this fact, the study examined the effect of subjective norm (SN) and attitude (ATT) with the inclusion of new construct, namely, perceived financial cost (PFC) to predict the intention of customers about the Islamic credit card in Pakistan. Design/methodology/approach Sample data were conveniently drawn from the bank customers with the help of a self-administered survey based questionnaire, which was consisted over five-point Likert scale. The study uses a sample of 492 bank customers located in the biggest city of Pakistan. Out of these responses, only 466 responses were used in the analysis, while the remaining responses were ignored due to missing data and incomplete responses. The data were analyzed through factor and regression analysis. Findings Findings from regression analysis suggest that SN and ATT show positive and significant impact on intentions to select an Islamic credit card, while PFC has a negative impact on intentions to select Islamic credit cards. Moreover, SN was found to be the most influential factor to predict the selection of Islamic credit card. Research implications This study has some practical implications for the academicians and Islamic bank managers. Through this research, bank managers can educate their customers about Islamic credit and financial products. Not only this, they should develop a strategy for the awareness of Islamic banking products through social networking and other marketing modes. On the other side, this study laid a foundation for future researchers to explore additional predictors of Islamic credit card. Their empirical work will provide a help to benefit and understand customers’ financial knowledge. Originality/value Islamic credit facility is entirely new in Pakistan and lacking with empirical support. Therefore, this investigation contributes to the existing body of knowledge by providing a comprehensive explanation on the Islamic credit card service in Pakistan.

Determinants of credit card misuse among Gen Y consumers in urban Malaysia

2019 ◽  
Vol 37 (5) ◽  
pp. 1350-1370 ◽  
Author(s):  
Rozaimah Zainudin ◽  
Nurul Shahnaz Mahdzan ◽  
Ming-Yee Yeap
Keyword(s):  
Self Efficacy ◽  
Urban Areas ◽  
Credit Card ◽  
Social Norm ◽  
Service Providers ◽  
Content Type ◽  
Factors Affecting ◽  
Gen Y ◽  
Klang Valley ◽  
Bad Debt

Purpose The concept of “buy now pay later” leads Malaysian Generation Y (Gen Y) to excessively use their credit cards for spending. To gauge the extent of this worrisome scenario, the purpose of this paper is to attempt to investigate the factors, including credit attitudes, knowledge on credit card, materialism, social norm and self-efficacy, that influence credit card misuse amongst Gen Y in Malaysia. Design/methodology/approach The authors have collected responses from a total of 501 respondents in two urban areas in Malaysia and estimated six multiple regression models to test five hypotheses. Findings The results suggest that credit card knowledge and self-efficacy are negatively related to credit card misuse amongst Gen Y in Malaysia. In contrast, positive relationships were found to exist between credit card attitudes, materialism and social norm and the dependent variable. Research limitations/implications In this study, the authors limit the data collection to the two biggest urban areas in Malaysia, namely, Klang Valley and Ipoh. Practical implications For the regulator’s perspective, the results can be used to understand the alarming indebtedness behaviour amongst working members of Gen Y and outline appropriate and effective policies to reduce their serious indebtedness. Financial service providers, however, can collaborate with regulators to curb credit card misuse amongst Gen Y, so that the latter can avoid high bad debt from line of credit facilities and bankruptcy. Originality/value The study’s findings will further enrich the existing literature on the factors affecting the credit card misuse, especially for the unique Gen Y cohort in Malaysia.

scholarly journals Developing credit card market from Vietnamese consumers’ perspective

2020 ◽  
Vol 7 (1) ◽  
Author(s):  
Vuong Duc Hoang Quan ◽  
Trinh Hoang Nam
Keyword(s):  
Credit Card ◽  
Positive Impact ◽  
Behavioral Control ◽  
Empirical Studies ◽  
Credit Cards ◽  
Subjective Norm ◽  
Perceived Usefulness ◽  
Perceived Behavioral Control ◽  
Factors Affecting ◽  
Credit Card Market

This study aims to identify the factors affecting the intention to use credit cards in Vietnam. Previous empirical studies on planned and actual behaviors showed that customers decide to own and use credit cards through their awareness of credit cards, including perceived usefulness, perceived behavioral control and subjective norm. To collect the data, we use structured self-administered questionnaires from 426 respondents making payments through bank accounts. The findings show that perceived usefulness, perceived behavioral control and subjective norm have a positive impact on credit card adoption among Vietnamese consumers. This study also supposes that customers from different demographics have different intentions to use credit cards. Some recommendations are made to improve the effects of banks’ policies on credit card application and use.

scholarly journals Credit card cue effect

2019 ◽  
Vol 38 (2) ◽  
pp. 368-383
Author(s):  
King Yin Wong ◽  
Michael Lynn
Keyword(s):  
Credit Card ◽  
Design Methodology ◽  
Credit Cards ◽  
Well Being ◽  
Financial Security ◽  
Consumer Spending ◽  
Content Type ◽  
Moderation Effect ◽  
Show Evidence

Purpose The extant literature has mixed results regarding the credit card cue effect. Some showed that credit card cues stimulate spending, whereas others were unable to replicate the findings or found that cues discourage consumer spending. The purpose of this paper is to investigate how consumers’ sensitivity to the pain of payment affects their mental associations about credit cards and how the differences in credit card associations moderate the credit card cue effect on spending, providing a possible explanation for the mixed results in the literature. Furthermore, this paper examines the role of consumers’ perceived financial well-being, measured by their perceptions of current and future wealth and their sense of financial security, in mediating this moderation effect. Design/methodology/approach An experimental study was conducted with a sample of 337 participants to test the hypothesized model. Findings After being shown credit card cues, spendthrift participants had more spending-related thoughts and less debt-related thoughts, perceived themselves as having better financial well-being and consequently spent more than tightwad participants. Originality/value To the authors’ knowledge, this is the first study to investigate the direct link between an exposure to credit card cues and perceived financial well-being, and one of the few to show evidence of the moderating effect of consumers’ sensitivity to the pain of payment on spending when credit card cues are present. This study suggests that marketers may use credit card cues to promote consumer spending, whereas consumers, especially spendthrifts, should be aware of how credit card cues may inflate their perceived financial well-being and stimulate them to spend more.

Does knowing overcome wanting? The impact of consumer knowledge and materialism upon credit card selection with young consumers

2015 ◽  
Vol 16 (1) ◽  
pp. 50-70 ◽  
Author(s):  
Jakob Cakarnis ◽  
Steve Peter D'Alessandro
Keyword(s):  
Comparative Study ◽  
Survey Research ◽  
Credit Card ◽  
Design Methodology ◽  
Credit Cards ◽  
Consumer Knowledge ◽  
Content Type ◽  
Young Professionals ◽  
The Impact ◽  
Selection Of

Purpose – This paper investigates the determinants of credit card use and misuse by student and young professionals. Critical to the research is the impact of materialism and knowledge on selection of the appropriate credit card. Design/methodology/approach – This study uses survey research and partial least squares to investigate credit card behaviors of students versus young professionals. Findings – In a comparative study of young professionals and students, it was found that consumer knowledge, as expected, leads to better consumer selection of credit cards. Materialism was also found to increase the motivation for more optimal consumer outcomes. For more experienced consumers, such as young professionals, it was found that despite them being more knowledgeable, they were more likely to select a credit card based on impulse. Originality/value – This paper examines how materialism may in fact encourage some consumers to make better decisions because they are more motivated to develop better knowledge. It also shows how better credit card selection may inhibit impulse purchasing.

Lending a hand: perceptions of green credit cards

2018 ◽  
Vol 36 (7) ◽  
pp. 1329-1346 ◽  
Author(s):  
Lei Huang ◽  
Julie Fitzpatrick
Keyword(s):  
Social Exchange ◽  
Undergraduate Students ◽  
Credit Card ◽  
Symbolic Interaction ◽  
Environmental Concern ◽  
Credit Cards ◽  
Medium Size ◽  
Content Type ◽  
The Usa ◽  
The Impact

Purpose The purpose of this paper is to explore the impact of donation amount and framing on financial products, this research investigates consumers’ attitudes and behaviors toward cause-related credit cards with different donation sizes and framing types. Design/methodology/approach This research investigates consumers’ perceptions of green credit cards using two experiments with a between-subject design (n =297) and a mixed design (n =238), respectively. All the participants, recruited from a major state university in the USA, are undergraduate students who use credit cards. Findings A medium-size donation optimizes the outcome of a cause-related credit card offer. Moreover, a donation framed as cash rewards has stronger effects on a consumer’s perception and consequent reactions to the “green” credit cards than an annual percentage rate framing. Finally, consumers with high levels of environmental concern and propensity to volunteer have stronger intention to adopt and are more likely to recommend the proposed credit card. Originality/value Building upon the theories of social exchange and symbolic interaction, this research is the first to provide empirical evidence regarding the application of volunteerism and perceived consumer effectiveness for financial institutions and their cause-related marketing campaign partners in selecting suitable environmental causes.

Factors affecting the development of e-government using a citizen-centric approach

2015 ◽  
Vol 6 (3) ◽  
pp. 206-222 ◽  
Author(s):  
Kanda Sorn-in ◽  
Kulthida Tuamsuk ◽  
Wasu Chaopanon
Keyword(s):  
Quantitative Research ◽  
Service Providers ◽  
Structured Interview ◽  
Government Agencies ◽  
Content Type ◽  
Factors Affecting ◽  
Government Services ◽  
Government Sector ◽  
The Government

Purpose – The purpose of this paper is to study the factors affecting the development of e-government by using a citizen-centric approach. Design/methodology/approach – This paper is a mixed-methods study consisting of qualitative and quantitative research. Data were collected from government agencies using a structured interview and questionnaire about e-government services. The research was collected from the people responsible for the management of an e-government project in 75 government agencies. In addition, the researcher collected data from 1,400 citizens by using an e-Survey questionnaire that grouped participants by age. Findings – By using a citizen-centric approach, the paper identified the factors affecting the development of e-government. There were five factors from the viewpoint of government agencies and citizen groups: quality of e-government services, policy and governance, information technology infrastructure, organization and economy and society. Research limitations/implications – The research covered the development patterns of e-government for services from government to citizens only. Practical implications – Seeing the importance of environmental factors for both service providers and service users would facilitate continuous improvement of e-government service provision by government agencies. Social implications – The results reflect citizens’ need for e-government services; quality is their priority. Hence, government agencies must consider the quality of the delivery of information and e-government services as they relate to the lifestyles and needs of citizens. Originality/value – The creation of knowledge from merging e-government concepts with citizen-centric principles is a modern government sector management theory. This research stresses the need for the government sector to see the need for e-government and to recognize the factors for its successful development. This means the design and development of e-government services should respond to the increasing needs of the citizens.

A cross-cultural study of purchase intention of sponsored products based on American and Korean spectators of the 2010 FIFA World Cup South Africa

2014 ◽  
Vol 4 (2) ◽  
pp. 158-177 ◽  
Author(s):  
Kevin K. Byon ◽  
Soonhwan Lee ◽  
Thomas A. Baker
Keyword(s):  
Purchase Intention ◽  
Behavioral Control ◽  
Group Analysis ◽  
Subjective Norm ◽  
Cross Cultural ◽  
Perceived Behavioral Control ◽  
World Cup ◽  
Global Marketing ◽  
Fifa World Cup ◽  
Content Type

Purpose – The purpose of this paper is: to explain the relative influence of attitude, subjective norm, and perceived behavioral control on purchase intention of the 2010 FIFA World Cup sponsored products; and to compare the purchase intention of American and Korean spectators toward sponsoring products of the 2010 FIFA World Cup. The structural equation modeling (SEM) revealed that subjective norm and perceived behavioral control were predictors of purchase intention. Further, multiple group analysis revealed that the path coefficient between subjective norm and purchase intention for the two groups was significantly different. Design/methodology/approach – A self-administered questionnaire was developed to measure the four constructs of the theory of planned behavior (TBP) as well as demographic information. Upon completion of the psychometric properties test of the TPB, a SEM was conducted to examine the proposed hypotheses. The same fit indices as with the measurement model were adopted to evaluate the model fit. Finally, a multi-group analysis was conducted to examine if the proposed relationships are different based on nationality (American vs Korean samples). A comparison of χ2 value between unconstrained and constrained models was employed to assess whether the two groups are statistically different. Findings – SEM revealed that subjective norm and perceived behavioral control were predictors of purchase intention. In this study, a multi-group analysis was conducted to examine if the proposed relationships in our model are different based on nationality. As a result, we found that two groups (i.e. American vs Korean) exhibited notable differences in subjective norms in determining purchase intentions of the 2010 FIFA World Cup sponsored products. Originality/value – Sponsors for mega sporting events, like the FIFA World Cup, must develop global marketing plans that appeal to worldwide audiences. Sport marketers, therefore, need cross-cultural marketing analysis on equivalence and bias so that they better understand how spectators from different cultures behave after consuming the same event. Thus, application of the TPB in cross-cultural studies aimed at understanding consumer intention after spectating the FIFA World Cup would provide marketers with valuable information for the formation of global marketing strategies.

Understanding continuance usage intention of mHealth in a developing country

2020 ◽  
Vol 14 (2) ◽  
pp. 251-272 ◽  
Author(s):  
Md Abdul Kaium ◽  
Yukun Bao ◽  
Mohammad Zahedul Alam ◽  
Md. Rakibul Hoque
Keyword(s):  
Structural Equation ◽  
Information Quality ◽  
Service Providers ◽  
Least Squares Method ◽  
System Quality ◽  
Content Type ◽  
Factors Affecting ◽  
Continuance Usage ◽  
The Government ◽  
Continuance Usage Intention

Purpose This study aims to understand the factors affecting the continuance usage intention (CUI) of mHealth among the rural elderly. Design/methodology/approach An integrated model was proposed with the constructs derived from multiple models such as the unified theory of acceptance and use of technology, information system success model and expectation confirmation model. Data were collected from 400 participants who had prior experiences with mHealth services in Bangladesh. The research model was tested using the partial least squares method based upon structural equation modelling. Findings The findings indicated that system quality, performance expectancy, facilitating conditions and social influence were significant to the degree of confirmation and ultimately affect satisfaction and CUI. Surprisingly, service quality and information quality were insignificant. Research limitations/implications This study has added in the field of knowledge by contributing some new thoughts and interpretations of continuance usage modelling for mHealth services. The findings may become beneficial for the government agencies, policymakers, mHealth systems developers and service providers. Originality/value As limited research was found on CUI of mHealth in the integrated view of rural elderly’s value, this research contributes to the extant literature by categorizing key factors that might support to proliferate the continuance usage of this service. Moreover, the contextualization of the related variables and integration of the existing model is theoretically original. Furthermore, because of a generic approach, the findings could be easily modified to assist other developing countries in the planning and up-take of mHealth.

Determinants of credit card spending and debt of Chinese consumers

2019 ◽  
Vol 37 (2) ◽  
pp. 545-564 ◽  
Author(s):  
Liqiong Lin ◽  
Mohamad Dian Revindo ◽  
Christopher Gan ◽  
David A. Cohen
Keyword(s):  
Rapid Growth ◽  
Credit Card ◽  
Credit Cards ◽  
Demographic Characteristics ◽  
Chinese Government ◽  
Credit Card Debt ◽  
Chinese Consumers ◽  
Content Type ◽  
Positive Effects ◽  
Credit Card Use

PurposeThe rapid growth of credit card use in China poses the potential for card overuse and the accumulation of increased debt. The purpose of this paper is to report on an investigation into the determinants of overall credit card spending and card-financed debt by Chinese consumers.Design/methodology/approachThis study focusses on two dependent variables: credit card monthly spending and card debt. The spending measure is based on consumer outlay for the month preceding the survey. Card debt is the consumers’ outstanding credit card debt when the survey was conducted. Three groups of independent measures are used: socio-demographic characteristics, card features and consumer attitude towards money. Both card spending and card debt are estimated with OLS methods. Data was obtained from the 2013 China Household Finance Survey of 1,920 households in 29 provinces and 262 counties across China that used credit cards over the survey period.FindingsThe empirical findings suggest consumers’ attitude towards money is more important in explaining card spending and debt variation than socio-demographic characteristics and card features. The credit limit set for a card, obligations to other loans and the method of paying for ordinary shopping exhibit positive effects on both card spending and card debt, while age exhibits a negative effect. Further, card spending is positively correlated with card debts, but the factors that determine card spending do not necessarily affect card debt and vice versa. Minimum card debt payments, cash advances, card tenure and interest-bearing debt have no effect on card spending but have positive effects on card debt. In addition, gender and income have opposite effects on card spending and debt.Practical implicationsThe relationships we have documented suggest several actions the Chinese Government could consider dealing with credit card debt risk. Controlling the aggressive promotional campaigns that card issuers use to attract consumers and aggressive credit policies should be a focus of attention. The Chinese Government might, for example, impose minimum age and income requirements for granting credit cards and prohibit issuance of new cards to applicants who are already in debt with other types of credit. In addition, more stringent criteria to curb increases in card limits and tighter control over cash advances made on cards should be applied. Minimum payment amounts can also be increased in order to reduce credit card debt risk.Originality/valueDespite ample documentation of consumers’ credit card behaviour, the literature is deficient in at least two areas of enquiry. First, most previous research has investigated either credit card spending behaviour or card debt, but not both. Second, with few exceptions, most research has investigated a range of specific factors that affect credit card use. In contrast, this study investigates card spending as well as card debt behaviour using a wide variety of consumer dimensions particularly relevant to credit card use and resulting debt. In addition, this study focusses on Chinese consumers, who traditionally prefer to save first and delay spending. The impact of the rapid growth of credit card use on this traditional Chinese orientation towards spending is dynamic. Documenting the influence of the individual factors examined in this study is likely to be of value to both policy makers and institutions that offer and manage credit in this changing environment.

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